Also found in: Medical.
A business that is legally completely separate from its owners. Most publicly-traded companies (and all major ones) fall under this classification. For United States tax purposes, C corporations are required to pay income taxes on their profits. The advantage to a C corporate structure is the fact that, unlike S corporations, there is no limit to the number of shareholders. A disadvantage is the fact that, because a C corporation is taxed itself and its individual shareholders are taxed on dividends, it is subject to double taxation.
A typical corporation that pays taxes on its income at the corporate level and then the shareholders are taxed on dividends distributed to them.Contrast with S-corporation,which has no taxes at the corporate level.